InDaily InDaily

Support independent Journalism Donate Subscribe
Support independent journalism

Business

Dick Smith stores to close

Business

Electronics retailer Dick Smith will close its 363 Australian and New Zealand stores within eight weeks, putting 2,890 staff out of a job.

1 Comment
1 Comment Print article

Receiver Ferrier Hodgson said it had not managed to find a buyer for the troubled retailer, which went into receivership in January with debts of about $400 million.

“While we received a significant number of expressions of interest from local and overseas parties, unfortunately the sale process has not resulted in any acceptable offers for the group as a whole or for Australia or New Zealand as standalone businesses,” receiver James Stewart said.

“The offers were either significantly below liquidation values or highly conditional or both.”

The company was put into voluntary administration in January.

The retailer first warned in October that full year profit could fall as much as 15 per cent to between $37 million and $43 million, as it stepped up discounting and advertising to restore sales growth.

However, the sales slump continued into November, resulting in the company having to dump its profit forecast a few weeks later.

The retailer was forced to launch a firesale in early December to clear unwanted stock that cost it about $60 million in writedowns.

more to come

AAP

Make a comment View comment guidelines

Help our journalists uncover the facts

In times like these InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to donate to InDaily.

Donate here
Powered by PressPatron

Comments

1 Show comments Hide comments
Will my comment be published? Read the guidelines.

More Business stories

Loading next article